Image source: The Motley Fool.

DATE

Thursday, May 28, 2026 at 10 a.m. ET

CALL PARTICIPANTS

• Chairman, President, and Chief Executive Officer — Daniel Patrick McGahn
• Senior Vice President, Chief Financial Officer, and Treasurer — John W. Kosiba Jr.

Need a quote from a Motley Fool analyst? Email [email protected]

TAKEAWAYS

• Total Revenue -- $86.4 million, representing a 30% increase against the prior year quarter and the highest quarterly revenue in company history.
• Grid Segment Revenue -- $73.7 million, up 33% over the year-ago quarter.
• Wind Segment Revenue -- $12.7 million, reflecting a 15% increase versus the prior year quarter, attributed to increased ECS shipments to Inox.
• Gross Margin -- 27.3% in the quarter, compared to 26.5% in the prior year quarter, including a 170-basis-point impact from $1.5 million of Comtrafo purchase accounting adjustments.
• Full-Year Revenue -- $299 million, a 34% year-over-year increase, with grid business accounting for 84% and wind business for 16% of total revenue.
• Operating Expenses -- Research and development and SG&A hit $18.8 million for the quarter, up from $15.6 million the prior year, largely due to Comtrafo-related costs.
• GAAP Net Income -- $4.5 million ($0.10 per share) for the quarter, up from $1.2 million ($0.03 per share) the preceding year; includes a $4.2 million noncash loss on Comtrafo contingent consideration.
• Non-GAAP Net Income -- $14.1 million ($0.31 per share) for the quarter, up from $4.8 million ($0.13 per share) the prior year, inclusive of a $5.3 million tax benefit from release of valuation allowance.
• Backlog -- 12-month backlog exceeded $280 million at year-end, up nearly 40% from $200 million a year earlier.
• Order Bookings -- Nearly $100 million in new orders for the quarter; approximately 10% of orders from the data center sector, up from 5% in the previous quarter.
• Operating Cash Flow -- $9.3 million generated in the quarter, $23.1 million for the full fiscal year, with $148 million in cash and equivalents at year-end.
• Comtrafo Acquisition -- Integration contributed to revenue growth and expanded transformer offerings, with impacts on expenses and margins from purchase accounting charges.
• Profitability -- Seven consecutive quarters of GAAP profitability reported, and eleven consecutive quarters of non-GAAP profitability achieved.
• Fiscal Q1 2026 Guidance -- Revenue expected to exceed $85 million, GAAP net income projected to exceed $3 million ($0.07 per share), and non-GAAP net income to exceed $8 million ($0.17 per share), with $1.5 million of noncash Comtrafo charges included.
• Workforce Expansion -- Headcount increased from 690 to 1,200 during the year, setting a new record for employment at the company.

SUMMARY

American Superconductor Corporation (AMSC 4.23%) recorded its highest ever quarterly revenue and expanded its backlog, pointing to increased demand in both core and new markets. Management highlighted diversified end-market growth, with utility, traditional energy, and data center demand all contributing to substantial order momentum. Strategic focus on integrating the Comtrafo acquisition sharpened the company’s exposure to Latin America and broadened its product portfolio in transformers. The company signaled ongoing incremental gross margin improvement, with further leverage anticipated as operating expenses stabilize amid scaling revenue. Cash generation remained solid, positioning AMSC for continued execution and potential market expansion initiatives.

• Management noted sustained momentum in traditional energy, stating customers facing "harmonics, poor power factor, and voltage instability" continue to drive product demand.
• CEO McGahn said, "We have delivered 7 consecutive quarters of GAAP profitability and 11 consecutive quarters of non-GAAP profitability."
• The 12-month backlog now provides "exceptional visibility into the next fiscal year," according to management, with additional total backlog above $375 million when including longer-dated orders.
• Approximately 40% of nearly $50 million in 2 and 3 megawatt ECS orders to Inox were shipped during the year, supporting Inox’s announced 3-gigawatt order book.
• Direct data center sales have begun to make a notable impact, with management stating these opportunities were "principally for power quality, at the data center as the data center is being constructed."
• Leadership emphasized operating leverage, with CFO Kosiba indicating, "that is a not a bad baseline to run into 2026. We will have some growth as the business scales up. But not to the level of the hopefully, the revenue growth that we experience."

INDUSTRY GLOSSARY

• ECS (Electrical Control Systems): Integrated power electronics and control solutions for wind turbines that optimize energy conversion and grid integration.
• D-VAR: A dynamic, grid-connected reactive compensation system used to control voltage and enhance power quality on the AC transmission grid.
• Comtrafo: Brazilian transformer manufacturer acquired by AMSC, contributing specialized transformer products and geographic market expansion.
• STATCOM: Static synchronous compensator device used for voltage control and power factor correction in electrical transmission networks.
• Ship Protection System (SPS): AMSC’s technology delivering magnetic signature reduction and reliable power for military naval vessels.

Full Conference Call Transcript

Daniel Patrick McGahn, Chairman, President, and Chief Executive Officer and John Kosiba, senior vice president, chief financial officer, and treasurer. Yesterday, after market closed, American Superconductor issued its earnings release for the fourth quarter and full fiscal year 2025. A copy of this release is available on the Investors page of the company's website at www.amsc.com. Remarks that management may make during today's call about American Superconductor's future expectations, including future financial results, plans and prospects constitute forward looking statements.

Actual results may differ materially from those indicated by such forward looking statements as a result of various important factors including those set forth in the Risk Factors section of American Superconductor's Annual Report on Form 10 k for the year ended 03/31/2026, which the company filed with the Securities and Exchange Commission on 05/27/2026. And the company's other reports filed with the SEC, which are also available on our website. The company disclaims any obligation to update these forward looking statements. On today's call, management will refer to non-GAAP net income, a non-GAAP financial measure. Tables of reconciliation of GAAP to non-GAAP financial measures can be found in the company's earnings release.

With that, I will now turn the call over to Chairman, President, and Chief Executive Officer, Daniel Patrick McGahn. Daniel?

Daniel Patrick McGahn: Thanks, Nicol. Good morning, everyone, and thank you for joining us. I will begin today by providing an update sharing a few remarks on our business. John Kosiba will then provide a detailed review of our financial results for the fourth quarter and full fiscal year 2025. He will also provide guidance for the first quarter of fiscal 26 which will end 06/30/2026. And following our remarks, we will open up the line for questions from our analysts. We are really excited to report a record revenue quarter. Our fourth quarter closed a very successful fiscal 2025, and we delivered another year of significant growth.

Revenue for the quarter came in at a new high surpassing $85 million We saw revenue grow by nearly 30% over the year ago quarter. Our grid business revenue grew by more than 30% over the year ago quarter, while our wind business revenue increased by 15% for the same period. We delivered 3 recent record revenue quarters during the fiscal year, over $72 million for the first quarter over $74 million in the third quarter, and now over $85 million in the fourth quarter. We have delivered 7 consecutive quarters of GAAP profitability and 11 consecutive quarters of non-GAAP profitability. We believe these record results and continued profitability reflect the strong momentum and the discipline behind our success.

The business is growing. The business is scaling. The business has been consistently profitable. Now let's take a look at our order bookings for the quarter, which were extremely strong. Fourth quarter orders reached nearly $100 million driven by strong utility and traditional-energy demand. In the traditional energy sector, we are increasingly supporting the growing demand for reliable power across natural gas, coal, and large industrial power applications. As these energy facilities expand and modernize, their operations rely on large motors, compressors, and electrical systems that can create power quality and grid challenges. For example, LNG facilities cool natural gas into a liquid for easier transportation. Then convert it back into gas for local distribution.

These facilities utilize large motors, compressors, drives and other heavy electrical loads that require certain level of power, and can create harmonics, poor power factor, and voltage instability. To mitigate these electrical disturbances, we provide solutions which help the site maintain power quality and protect assets within their operations. Our offerings are for both power supplies and power quality solutions for this key market. Additionally, nearly 10% of our fourth quarter orders were driven by the data center sector, within our utility market. This demand combined with our orders in traditional energy, reflects a powerful tailwind across our core markets.

We closed the fiscal year with a robust 12 month backlog of over $280 million This represents nearly a 40% increase versus the year ago 12 month backlog of $200 million We believe that this puts us in great position to keep momentum going in the business for fiscal year 26. Average quarterly orders in fiscal 25 exceeded $70 million. This compares to about $60 million in the prior year adjusting the numbers for the 1 time Royal Canadian Navy order which was more than $70 million itself. We booked a total of nearly $290 million of new orders in fiscal 25 across larger projects, repeat customers, and increasing activity in our end markets.

Overall, fiscal 25 represented a significant step forward for our company. We completed the acquisition of Comtrafo, which broadened our transformer product portfolio and expanded our reach into Brazil and Latin America. We believe this acquisition creates new opportunities across utilities, transmission infrastructure and grid expansion. We saw total revenue grow more than 30% to nearly $300 million. We saw revenue diversity across traditional energy, renewables, materials, military, utility, as well as some other sectors. Over half our sales came from traditional and renewable projects combined. The remainder came from materials at over 15%, followed by military and utility projects at over 10% each.

A significant part of our strong performance was driven by our core business, which achieved approximately 25% organic growth for the fiscal year. We ended the year with over $145 million in cash. These accomplishments highlight the growing demand for our solutions, as well as our position as a trusted partner domestically and increasingly abroad. We also made great strides in our military business. In fiscal year 25, we completed the delivery of another Ship Protection System to the US Navy San Antonio-class platform aboard the USS Richard McCool Jr. Today, our power supplies play a critical role in the shipyards by providing steady, reliable power to vessels, during assembly and docking, when they are disconnected from other power sources.

And principally, we are powering critical ship systems for the US Navy. Through our renewable installations, we are facilitating the grid needed to safely expand and integrate distributed power. This ensures utilities can maintain reliability, without sacrificing performance. In our wind business, we showed year over year growth driven by Inox's business, and the proven capabilities of our 2 and 3 megawatt ECS. We believe the business is aligned and poised to deliver improvement Now I will turn the call over to John Kosiba to review our financial results for the fourth quarter and full fiscal year 2025 and provide guidance for the first quarter of fiscal 26. Which will end 06/30/2026. John?

John W. Kosiba Jr.: Thanks, Daniel. Good morning, everyone. Total revenues for the fourth quarter of fiscal 25 were 86.4 million This is an increase of 30% compared to the year ago quarter of $66.7 million Grid business revenues of $73.7 million increased by 33% versus the year ago quarter. While our wind business unit revenues up 12.7 million increased by 15% versus the year ago quarter. Moving on to the full fiscal year. Our total revenues in fiscal 25 were 299 million This is an increase of 34% compared to fiscal year 24 revenues of 223 million. In fiscal 25, our grid business revenues increased by 34% and represented 84% of total revenue.

The year over year increase is a result of organic growth as well as contributions from Comtrafo. Wind business revenues increased 34% in fiscal 25 represented 16% of total revenue. The year over year increase is a result of increased ECS shipments to Inox for our 2 megawatt and 3 megawatt class ECS. Systems. Gross margin for the fourth quarter of fiscal 25 was 27.3%, compared to the year ago quarter of 26.5%. Included in cost of goods sold in the fourth quarter was approximately $1.5 million of purchase accounting and noncash adjustments related to Comtrafo. This had an impact of approximately 170 basis points on the quarter.

For the full fiscal year, AMSC generated gross margins of 30.5% This was up from 27.8% in fiscal year 24. This represents a gross margin expansion of 270 basis points over the prior year. Now moving on to operating expenses for the fourth quarter of fiscal 25. Research and development and SG and A expenses totaled 18.8 million This was up from $15.6 million in the year ago quarter. Approximately 20% of R&D and SG&A expenses in the fourth quarter of fiscal 25 were noncash. For the fiscal year, research and development and SG and A expenses totaled 73.4 million compared with $54.5 million in fiscal 24.

The year over year increase is largely associated with the inherited operating expenses and onetime acquisition related expenses from our recent acquisition of Comtrafo. Our net income in the fourth quarter of fiscal 25 was $4.5 million or $0.10 per share. This compares to $1.2 million or $0.03 per share in the year ago quarter. Included in our fourth quarter fiscal 2025 net income, was a $4.2 million loss on contingent consideration a noncash expense related to the likelihood of achieving Comtrafo earn out targets. Our non-GAAP net income for the fourth quarter of fiscal 2025 was $14.1 million or $0.31 per share.

This is compared to a non-GAAP net income of $4.8 million or $0.13 per share in the year ago quarter. Included in our fourth quarter of fiscal 2025 net income and non-GAAP net income was a tax benefit of $5.3 million due to the release of the valuation allowance on deferred tax assets. For the full fiscal year, our net income was $13.4 million or $3.12 per share. This compares to a net income of $6 million or $0.16 per share in fiscal 2024. Our non-GAAP net income for fiscal 2025 was $15.8 million or $3.68 per share. This compares to non-GAAP net income of $2.4 million or $0.65 dollars per share for fiscal 2024.

Included in our fiscal year 2025 net income and non-GAAP net income, was a tax benefit of $11.8 million due to the release of a valuation allowance on deferred tax assets. We ended fiscal year 25 with $148 million in cash equivalents, and restricted cash. This compares with 85.4 million on 03/31/2025. In the fourth quarter of fiscal 25, we generated $9.3 million in operating cash flow. For the full fiscal year, we generated $23.1 million in operating cash Now turning to our financial guidance for the first quarter of fiscal 26.

We expect that our revenues will exceed $85 million Our net income on that revenues is expected to exceed $3 million or $0.07 per share and our non-GAAP net income is expected to exceed $8 million or $0.17 per share. Included in our net income and non-GAAP net income guidance is approximately 1.5 million of purchase accounting and noncash amortization associated with the Comtrafo acquisition that is expected to be expensed into cost of goods sold These charges will taper down starting in Q2 FY 26. Once these noncash purchase accounting charges fall off amortization schedule, we expect Comtrafo's gross margin will fall well within AMSC's gross margin. With that, I will turn the call over to Daniel. Daniel?

Daniel Patrick McGahn: Thanks, John. AMSC delivered a transformational year During fiscal 2025, we grew organically while expanding through acquisition. Profitability improved this year marking an important milestone for us. After delivering 7 consecutive quarters of GAAP profitability, and 11 consecutive quarters of non-GAAP profitability, we are now operating as a profitable company. And that includes adapting to normal financial items, such as tax expense. As our company scales and to the extent that we are unable to utilize our existing net operating losses, we expect items such as tax expenses to become more regular going forward. We are now seeing our financials reflect the characteristics of a more mature company.

More importantly, this progress reflects the strength of the business, and the customer relationships we have built over time. We have cultivated growing relationships with our customers, across multiple projects that have increased in size, scope, and technical complexity. Today, delivering greater volumes to repeat customers. In addition, we are delivering integrated solutions that add unique value to the challenges customers face. By delivering integrated power systems, we ensure that certain products such as rectifiers, filters, STATCOM, capacitor banks, and or transformers are designed to work together. This design simplifies integration, and improves project reliability.

We believe our integrated power systems help improve power quality, and meet grid requirements from the start, avoiding extra cost, downtime, redesigns, expensive grid updates, or penalties from utilities. We are now providing our integrated power solutions to customers in the mining and utility sector. We believe our diverse bookings, strong balance sheet, and operational success in fiscal 25 have set the stage for long term improvement in the business. The business is in its strongest position ever. And we believe it is still getting better. We enter fiscal 26 confident in achieving our goal to continue building a more resilient and profitable company. It is certainly nice to be talking about $85 million of revenue. This quarter.

Considering we were talking about $30 million of revenues per quarter only 3 years ago. With that, let's turn our focus to fiscal 26. Starting with the growing opportunities in our power solutions. Global energy demand is accelerating. Putting more pressure on the grid. Traditional energy, renewables, semiconductors, data centers, and defense are driving major investments in power infrastructure. While reshoring and an aging infrastructure increase the need for reliability. This is creating strong demand for our power solutions, as customers expand capacity particularly in environments where harmonics voltage instability, and rapidly changing loads challenge grid performance. Our solutions are supporting applications across natural gas, mining, renewable heavy grids, and data centers. And we are participating in more utility projects.

During fiscal 25, we extended our utility presence into Latin America. as well as entering the data center market. These utility projects improve substation power quality to support demand including that of data centers. Stabilize voltage to enable expansion as thermal plants retire, reinforce transmission infrastructure to support industrial load growth, including large mining operations on vulnerable lines. And integrating renewables and distributed energy resources while supporting wind, rooftop, and community solar and battery storage system. Our products are designed to optimize reliability, maximize output, and enhance power quality. We are uniquely positioned to enable our customers to power facilities in ways that scale without adding complexity or size. We are not just responding to grid challenges.

We are enabling the changes to support the changing environment. Additionally, our power supplies power critical ship systems. And deliver reliable power for shipyards and docked vessels. Our Ship Protection Systems, or SPS, help naval vessels by reducing their visibility to enemy threats. Over the last several years, we have delivered on 4 out of the 5 SPS systems to the US Navy's following vessels. The USS Fort Lauderdale, the USS Harrisburg, the USS Pittsburgh, and most recently, this fiscal 25, delivered on the USS Richard McCool Jr. We expect to begin our first delivery to the Royal Canadian Navy this fiscal year. 2026.

We have continued to deliver advanced power solutions that keep naval operations running strong at the shipyard. In our wind business, we design and supply electrical control systems, or ECS, that make wind turbines more competitive. and efficient. In fiscal 25, we secured nearly $50 million in orders for our 2 and 3 megawatt ECS from Inox to service their growing demand. About 40% of these systems were shipped during the fiscal year leaving our backlog in a great position. Our proprietary technology is helping Inox scale, supporting what they have called their strongest backlog in recent memory with over 3 gigawatts of orders. In closing, fiscal 25 was a defining year of execution and scale for our company.

We delivered record revenue, growing more than 30% year over year. Driven by 25% organic growth. We increased our workforce from 690 to 1.2 thousand team members during the year. Marking a new record employment level. We are surrounded by an exceptionally driven, innovative, and accountable team that helps us take our service value, and company to the next power. We closed an acquisition backed by an ambitious team. That is deeply inspired by our purpose to power progress. Operationally, we experienced momentum from powerful tailwinds, We expanded our 12 month backlog by 40% to over $280 million giving us exceptional visibility into the next fiscal year, while maintaining a strong balance sheet with over $145 million of cash.

Strategically, we successfully diversified our revenue base by expanding our geographic footprint, expanding our product portfolio, and delivering integrated solutions. Furthermore, our initial entry to data centers, while early, validates our ability to capture high growth tailwinds. We closed a fantastic fiscal 25. And are off to a very good start for fiscal 26. With tremendous opportunities ahead of us. We are at the center of some of the most important transformations of our time, from defense to industrial growth from renewable integration to grid modernization. With a proven strategy, a strong capital position, and a unified organization, we believe we are exceptionally well positioned to drive long term value for our customers.

Our solutions are helping power the evolution of a grid that is fit for the future. A more reliable and resilient grid built to support and incorporate a broad mix of energy sources. We are executing on our vision, and believe that our creativity, can meet today's challenges and help us progress to a better future. This means using future facing technologies to harmonize the world's desire for decarbonization, with the need for more reliable, effective and efficient power delivery. We are committed to powering progress by designing, developing, and deploying power control solutions that harmonize an increasingly complex energy system. Thank you for your continued trust and support.

We look forward to sharing our progress with you in the months ahead. And invite you to explore our new website which better reflects the company AMSC has become. Keith, we can now open the line to any questions. From our analysts.

Operator: Yes. Thank you. Will now begin the question and answer session. Ask a question, you may press star then 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. At any time if your question has been addressed and you would like to withdraw it, please press star then 2. At this time, we will pause momentarily to assemble the roster. And the first question comes from Eric Stine with Craig Hallum.

Eric Stine: Hi, Daniel. Hi, John. Good morning.

Daniel Patrick McGahn: Good morning. Hey.

Eric Stine: So can we just talk about the orders first? I mean, obviously, highlight of the quarter. And this is a pretty good step up. You referenced the 70 million average over the last previous 4. Just curious, you know, how much of that is contraffo? Is this is there something that impacted this, you know, that is out of the ordinary, or should we expect this to kind of be a new level as, you know, as your business historically has kind of made these steps up over time.

Daniel Patrick McGahn: We are hoping it is a step up to the next level. I think to be blunt, so far in 2026, things have started out very well for us. These tailwinds are really driving the business. there is a part of it, but it is proportional. for Comtrafo, so they are moving at the right pace We are very excited about them and the prospects there in that market. it is a diverse set of orders. A lot of it is traditional energy. We highlighted 10% of it is data centers where last quarter, we had 5% was data centers. So that is a piece. I think we are just in the right place at the right time.

The problems that we solve are paramount in being invested in by a number of parties. And we are very excited, Eric, about what the prospects are for us for 2026.

Eric Stine: No, absolutely. Maybe just sticking with data center. So I know that last quarter, 1 thing you highlighted is that you had made a sale or delivered directly to a data center customer, I know historically, you have been involved; it is in support of utilities as they prepare for everything that is required there. And it sounds like the 10% this quarter was more skewed to utility. So maybe just kind of talk about that breakdown.

Daniel Patrick McGahn: Yeah. That was again-- I am sorry. That was direct to the data center, not direct to utility, which is why we sorry, direct to the data center, which is why we highlight it. Okay. there is addition there is a utility business. And we do think that there will be a fit for us with the same application set in Latin America as well, and that is something that we are gonna work on.

Eric Stine: Okay. Thank you for that clarification. And I guess just last thing. I mean, I know in some of your other applications, way that they have played out over time is you get in, you prove the application, then eventually you are specked in. So I know it is still, you know, pretty early days, but is that kind of how you see this playing out in the data center space as well?

Daniel Patrick McGahn: that is what we hope. that is the playbook that we have run on the other markets. And we are seeing the beginning of that. We have a pretty robust pipeline of future orders for data center, which is why I am opening my big mouth. Today, highlighting it again. We think it is Yep. Think it is it is part of the business. I am always I am always joyful in the diversification that this opportunity presents. We are a well diversified company in power.

And I think that we are in a fantastic position it is really now incumbent on us as you are getting at the order book seeing that grow certainly helps support the thesis that we are taking advantage of these tailwinds, which is what we wanna continue to do. Okay. Thank you.

Operator: Thank you. The next question comes from Colin Rusch with Oppenheimer.

Colin Rusch: Daniel, can you talk a little bit about the integration and progress on qualifying the transformer product for The U. S. I am just curious about from a product perspective if there is a mix headwind in near term as you guys work through all the supply chain optimization. And then how quickly we might be able to see some of those transformers sold into North America.

Daniel Patrick McGahn: Yeah. I do not see a headwind there. What I see is a company that is very excited to be part of AMSC. What I see is a company that is operating exceptionally well. Driven by a family that is super excited to be part of AMSC. I think the opportunities ahead of us combined are extraordinary. To be very blunt. I think in the near term, we tend to our knitting in Brazil. there is a huge opportunity in the utility space and in the industrial space in Brazil alone. The main reason that we went forward with the acquisition of Comtrafo is the access to that opportunity.

And the expansion of the product line in the form of large power transformers. So I think that alone really is the focus and what is going to drive us. I do think the North American market will come. I am very excited about the prospects there. I am very excited about the progress that we are making. And I look forward, Colin, to that becoming a highlight of our future call. But right now, we are trying to get the team to focus on, let's take advantage of the Brazilian opportunity. Let's plant the seeds throughout Latin America to be able to expand the combined business in mining and in utilities throughout Latin America.

And then be in position to be a qualified supplier for North American utilities. The third part will take time. But I am very excited that we will be able to demonstrate some progress, hopefully, along the way as that develops. So there is kind of a 3-step focus on Brazil. Expand throughout Latin America with the combined product offering. And then bring those large power transformers here to North America.

Colin Rusch: Perfect. And then shifting gears a little bit into the military opportunity. You know, I appreciate the level of detail on the shared protection systems. But I am curious about the port opportunity and how quickly that might move. We are seeing, you know, pretty substantial numbers tossed around for budgets in the U.S. I am curious given the portfolio that you have and the ability to really support incremental power out to the ports, How we might see that start flowing through the grid business?

Daniel Patrick McGahn: Yeah. I think as we look at where we are given the conflicts in the world, given where we are with energy, demands and prices for things, that we are seeing demand driven on the grid in a variety of areas. And the port thing is we initially started looking at shipyards. And how we take our industrial power supplies and bring them there. I think that there is further diversification that we are going to see happen throughout energy infrastructure. All the way through to the delivery at the port. So it is an opportunity that we are positioned. We hope to take advantage of. And we are excited about that broader opportunity in more traditional power. Great.

Thanks so much, guys.

Operator: And the next question comes from Justin Clare with ROTH Capital Partners.

Justin Clare: Hey, good morning. Thanks for taking our questions here. I wanted to follow-up just on the data center opportunity. Wondering if you could just better help us understand how AMSC is participating here and where in the value chain. If you could share, you know, which, types of products are being pulled forward by the data center related demand. And then is this primarily utility side power quality equipment that is at the substation, or are you actually supplying equipment that is installed on the data center campus or within the facility itself?

Daniel Patrick McGahn: Let me try to unpack all that. So the data center wins that we have had direct to the data centers are principally for power quality, at the data center as the data center is being constructed. what is being realized in the industry is that as data centers get larger, there is a persistent power quality problem that we can uniquely solve. it is very akin to what we do in semiconductors with semiconductor fabs. So it is managing voltage. it is managing harmonics. it is basically providing power quality. Now that being said, we do think that there is an opportunity for power supplies at data centers.

And part of the mindset and shifting to have a more broad offering in transformers. A lot of transformers are getting sold into data centers. It puts us in the position now to have an offering, again, direct to data centers for their transformers. We do also kind of as a compliment continue to see demand on the utility side. To be able to further bolster the grid in part because of data center demand. So there is kind of a what we used to say was kind of a second order driver to data centers.

Now we kind of have a 1-2 punch: Support the data center directly, and also be able to support the utilities as clusters of these grow and the grid itself gets more strained or constrained.

Justin Clare: Got it. Okay. Appreciate that. And then, you know, we are just looking through the 10-K, we saw that the Asia Pacific grid revenue for fiscal 25, it increased almost 2x year over year relative to fiscal 24. Wondering if you could just help us understand what drove the magnitude of that growth. Was this concentrated in a few large projects? Or with specific customers, or does this reflect kind of a broader regional inflection in the demand you are seeing there?

Daniel Patrick McGahn: that is a good pickup in the tables and the detail. So on the grid side, if you look on the wind side, you know that is really driven by Inox. On the grid side, it is a couple things. it is supporting some very large renewable projects in the region. Which I will not say is brand new to us, but it is a bigger business opportunity this year. Which helped drive some of that growth. But principally, it is semiconductor and in the material space. So, we are actively promoting not only in North America but in Asia Pacific those solutions and offerings. And we had a tremendous year. In the Asia-Pac region overall. that is great. Okay.

Good to see the strength. Appreciate the time. Thanks.

Operator: Thank you. And the next question comes from Tim Moore with Clear Street.

Tim Moore: Thanks, and congratulations on your order. Growth and backlog magnitude subsequent to the Comtrafo contribution boost in the December quarter. Good job on the EBITDA margin expansion. I just want to kind of go into a thread on SG and A expense leverage. I mean, it is been important part of our thesis. We know you will expand gross margin. With volume, but we know that there is SG and A seasonality seems to be the lowest percentage of revenue in the last 3 years in your fiscal fourth quarter. How do you think about SG and A as percentage of revenues improving this fiscal year despite getting Comtrafo?

John W. Kosiba Jr.: Yes. So if you look at our Q4 SG&A, I would say that is a fairly good representation. If you back out the contingent consideration, we do not know what that will be quarter to quarter. But if you look at the research and development, sales and marketing, and regular G&A, you know, that is what we feel pretty good. that is a not a bad baseline to run into 2026. We will have some growth as the business scales up. But not to the level of the hopefully, the revenue growth that we experience.

Daniel Patrick McGahn: No, that is helpful. Said several times that we still believe the business was still sized overall that we think the business can grow substantially before we have to really see substantial increases in SG and A. No, that is a great driver of incremental EBITDA margin. Part of our thesis. And then just switching gears, I know you have talked a lot about the backlog.

Tim Moore: But just please correct me if I am wrong. Your backlog figure that you report in your release and talk about quarterly that is the 12-month amount. Right? Not the 18-month value that could be, you know, 75 or 100 million higher. Is that true?

Daniel Patrick McGahn: Yeah. The total backlog, I think, is about $375 million. So that is the total, North of that. And the 12 month number, we highlight Because it gives people a good predictor of what the next 4 quarters could look like at any point in time. And you know, our lead times are still kind of averaging in that 9 to 12 month which means that we can continue to add orders to improve the forward looking 4 quarters. that is terrific.

Tim Moore: And we know you are gonna plan to add capacity in Brazil for Contrapo. But, how comfortable are you with any capacity constraints in the U.S. and North America given your backlog that is been growing, or do you need to add any more capacity? The, you know, the good thing about the way the business is designed is to increase the capacity.

Daniel Patrick McGahn: it is just increasing labor. So you know, going to more days and more shifts And we are seeing some of that beginning in some of our factories. So we are really excited about the opportunities that our customers are presenting to us. For challenging work for our employees. So we are very much in a we need to take care of our business now, operate very well, and service our customers. And that is coming back kind of in spades with bigger orders and more business from those customers. So the factories are set to be able to scale to be able to respond, and it is really principally driven by labor. Great. Thanks, Daniel. I appreciate that.

Tim Moore: My last question is now that Comtrafo integration is underway, you have had it for almost 6 months. You know, we know you got to do capacity planning expansion there. How comfortable would the management team be to possibly make another acquisition this fiscal year, maybe something in North America given your cash balance?

Daniel Patrick McGahn: Yeah. I think we will see on that. I think we are still digesting Comtrafo. We are only 4 months in to the relationship with them. it is really brought a whole new level of excitement. Because in North America, the team is very excited about some of the earlier comments I made that I tend to say, well, let's take our time. But the team is very excited about the opportunities for Comtrafo in North America. To the point where I kind of try to slow it down and say, you know, hey, Let's make sure, you know, we are taking advantage of all our opportunities.

But I think the combined product offering throughout Latin America really is a huge winner. And I do not think that is something that we have probably talked a lot about. Hopefully, in the coming quarters, we will have demonstrable success that we can highlight along the way. But we are a very different company than we were even a year or so ago. I mean, the total available market for us went up by 50%. I do not know if people appreciate that. The opportunity for this company and the tailwinds that we are seeing really is a unique time in history.

And we are super excited and we are trying to be in position to take advantage of those opportunities as they come. that is terrific. color and clarity. Thanks. that is it for my questions.

Operator: Thank you. And that does conclude the question and answer session. I would like to return the conference back over to Daniel McGahn for any closing comments.

Daniel Patrick McGahn: I think 1 thing I will say is, in John's remarks, he made a very important reflection on gross margin. So that would be something I definitely would point out and say, he really tried to explain things so you understand that gross margin will continue to improve probably incrementally. Really, but going forward, it is growing the top line and getting the leverage over the operating expenses that we are going to see really help drive profit. And that is what the team is focused on going forward. This has really been a transformative year for the company. I cannot say that enough or in as many different ways. I do not think it is fully appreciated.

I think within our employee base, they are just starting to really understand We are much bigger and broader. Than we ever have been or ever thought we would be. From a product lineup standpoint. The nearly $300 million in revenue, that represents really it is 34% growth. I mean, it is extraordinary and really driven by organic part of the business. We showed pretty significant improvement in gross margin. Going from about 28% to about 30%. Right? So continuing to be able to move that Delivering profit consistently. that is something that we are very proud of. But we know now we need to drive the leverage throughout the business.

We believe we are positioned for growth given just where the FY 2026 backlog sits and having the acquired revenue from Comtrafo. The expansion, you can hear I am just jubilant about in Latin America. The diversification of our revenue. And this is really driven by traditional energy and utility business. We are becoming now really about power. And the new tagline of the company is to the next power. AMSC. that is really purposeful. it is very powerful. And that is where we are headed. So we are excited. Hope that you are as well. We appreciate your time and attention and look forward to being able to talk to you in the coming months. Thank you. Be well.

Operator: Thank you. This concludes today's teleconference. Thank you for attending today's presentation. You may now disconnect your lines.